Intro to Course

Welcome to ESG steward input training with VLU. This course is designed to give you a deeper understanding of ESG steward inputs, for Energy and Emissions standards within the Visual Lease Platform.

By the end of the course, you should be able to:
– Understand the components of ESG
– How to input data for Scope 1 and Scope 2 standards within the ESG Steward
– Understand the different fuel types and how to determine which input to use.
Please Take a moment to review the agenda. If you are looking for a specific topic, feel free to jump to the corresponding timestamp.

Topic 1: What is ESG?

In this video we will discuss what ESG is, the different groups associated with ESG, and how Visual Lease’s ESG Steward will be tied into the standards.

ESG stands for Environmental, Social, and Governance. ESG refers to a set of principles for a company’s behavior used by socially conscious investors to screen potential investments.

These new principles will help investors see a more holistic view of a company. ESG will provide company responsibility and accountability to socially conscious policies. Essentially, ESG will give investors better insight into how the company operates instead of solely based on financial outcomes.

As mentioned before, ESG is comprised of three components.

Starting with the G in ESG, we have Governance, which tends to deal with
• Executive compensation
• Shareholder Rights
• Takeover Defense
• Staggered Boards
• Independent Directors
• Board Elections and Political contributions

The S in ESG is the Social Component will track the following
• Discrimination
• Diversity, Equity, and Inclusion
• Human rights
• Community Relations
And Animal Rights
Visual Lease ESG Steward will focus on the Environmental principle as it ties very well into the rest of the Visual Lease platform.

The ESG Steward will focus on the environmental tracking and impact of an organization using GRI Standards 302-306. This means the Steward will focus on data inputs for things such as the following:

• Carbon emissions
• Energy consumption
• Waste disposal
• and Water Usage

Please note: The ESG Steward is intended to track your organization’s actual performance and impact on various environmental factors and allow you to perform analysis on the data. It is not meant to be an “all-in-one” ESG compliance tool, an aggregator reporting tool, or a forecasting tool that predicts the impact of environmental events on corporate financial statements.

Topic 2 –Energy (Scope 2)

In this video, we will discuss how to access the Scope 2 module within the ESG steward. Scope 2 deals Energy consumption, which is the amount of energy produced minus the amount of energy consumed.

When energy, or in this case, electricity is consumed (the input), an output will take place in terms of creating different greenhouse gas emissions. Both energy inputs and outputs will need to be reported on.

Before determining the output amounts, it is important to take into consideration the following input types.:
• Energy Consumed
• Amount of heating or cooling consumed
• Amount of steam consumed

It is also important to consider the following for energy inputs:
• Is the energy a renewable or non-renewable source
o Ie – solar panels that generate energy for the building vs. buying it from a utility company
• Amount of energy consumed and sold back
o Ie- solar panels generate excess electricity and its sold back to the utility company.

Total energy consumption is the sum of these inputs, plus any self-generated energy, minus energy that is sold.

Different types of energy will create different types of greenhouse gasses. In order to better streamline and report, there is a formula that calculates the different greenhouse emissions into a CO2 equivalent, which is in metric tonnes. The EPA (in the United States) determines how much CO2 is emitted per megawatt hour of electricity.

Before we get started, please note that if ESG has not been purchased for your company, the ESG windows described in this training will be unavailable.

To get started, open a lease record. For this training, we will select ESG from the main menu, then select a Record ID from the list to open it.

Once the record is open you will see there is a new tab option called ESG, located here. Below that will be your ESG options. Select Scope 2 to open the ESG Scope 2 page.

You can filter your entry results by selecting a specified date range from the drop-down or a custom date range by entering the dates, here. To reset your date filters, simply click the reset button here.

Before adding an electricity entry, you must select the energy grid the record is located in.

The USA is broken into 28 different electrical grid sections, each with a different CO2e conversion rate. For example, the Northwestern portion of the United States has many hydroelectric dams, causing a lower greenhouse gas emission vs. an area that utilizes coal-powered plants. Both of these regions will have different conversion rates.

To change your energy grid, select Manage Energy Grid, here. A pop-up window will open where you can select the new grid location from the drop-down list.

Please note: Only one energy grid can be assigned for each lease location. Changing your grid location can have an impact on your GHG Conversion Calculations.

Next, click Add Electricity Entry by clicking here.

A pop-up window will display where you will input your values. Begin with the date. Then enter the cost, the electricity value, and the value’s unit of measurement.

Here, you can upload any files pertaining to the entry, like an electric bill for example.

Next, you can enter any notes about the entry, here.

Once all data has been entered, you can click save and next, which will allow you to add an additional entry, or click save, which will bring you back to the ESG Steward page.
Once saved, your entries will display here.

The columns will include the date, electricity type, monetary amount (or cost), Input amount, Unit of Measurement (or UOM), converted Standard Amount and UOM, converted heat content (mmBTU), and one or all of the following greenhouse gas emissions depending on the GHG Output selected:

• CO2 (kg/mmBtu)
• CH4
• N20
• Or the default selection, CO2e or CO2 Equivalent

If CO2 Equivalent is selected, as you see here, you will see the greenhouse gas emissions and their unconverted outputs, located here.

Here, you will see the total CO2 equivalent for all greenhouse gas emissions for this location-based entry.

Please note: Each portion of the greenhouse gases listed in the table goes through a conversion to equal the total amount of CO2 equivalent for the entry. Because the greenhouse gases listed do not display their converted portion of the CO2e, adding these numbers together will not equal the total CO2e for the entry.

On the right of each row you will see your edit and delete icons and a kebab to display the history of actions performed for that event.

Topic 3 Emissions (Scope 1)

In this video, we will discuss how to access the Scope 1 module within the ESG steward. Scope 1 deals with GRI 305, which is Emissions. Emissions are the output of a specific type of fuel that is burned.

Before we get started, please note that if ESG Steward has not been purchased, the ESG windows described in this training will be unavailable.

To get started, open a lease record, in this training, we will select ESG from the main menu, then select a Record ID to open it.

Once the record is open, you will see there is a new tab option called ESG, located here. You platform administrator will have created a conversion chart for you to reference, which can be accessed here.

Below are your ESG options. Select the Scope 1 subtab to open the module.

You can filter your entry results by selecting a specified date range from the drop-down or a custom date range by entering the dates here. To reset your date filters, simply click the reset button here

Below the date filters, you will see sections for Natural Gas, Petroleum Products, and Mobile Fuel.

In the Natural Gas section, you will need select the GHG Output type from the list, here.

Next, you will need to add a Natural Gas entry by clicking here.

A pop-up window will display where you input your values. Begin with the date. Then enter the cost, the Natural Gas Value, and the value’s unit of measurement.

Here, you can upload any files pertaining to the entry, like a natural gas bill, for example. Once the file is uploaded, select the document type from the drop-down list, here.

Next, you can enter any notes about the entry here.

Once all data has been entered, you can click save and next, which will allow you to add an additional entry, or click save, which will bring you back to the ESG Steward page.

Once saved, your entries will display in the table, here.

The columns will include the date, petroleum product type, monetary amount (or cost), Input amount, the Unit of Measurement (or UOM), the converted standard amount and UOM, the converted Heat Content (mmbtu), and one or all of the following greenhouse gas emissions depending on the GHG Output selected:
• CO2 (kg/mmBtu)
• CH4
• N20
• Or the default selection, CO2e or CO2 Equivalent

Note that the selections made in the GHG Output will impact the table data that is displayed. For this training, we will select the default CO2e, or Carbon Dioxide equivalent. This means whatever type of greenhouse gas emissions created by the amount of consumed natural gas, will be converted into the CO2 Equivalent.

When CO2 Equivalent is selected, like you see here, you will see the greenhouse the gas emissions produced and their unconverted outputs, located here.

You will then see the total CO2 equivalent for all greenhouse gas emissions for the entry, here.

Please note: Each portion of the greenhouse gases listed in the table goes through a conversion that will equal the total amount of CO2 equivalent for the entry. Because the greenhouse gases listed do not display their converted portion of the CO2e, adding these numbers that you see in the table will not equal the total CO2 equivalent for the entry.

Next, any attachments will be shown here (such as an electricity bill), and any notes regarding the entry.

On the right of each row you will see your edit and delete icons.
Petroleum products consist of stationery products that burn a specific fuel type. For petroleum products, the burned fuel will produce a specific type of greenhouse gas emission. The conversion for the fuel type to CO2 equivalent will be different.

You can add a Petroleum Product entry by clicking here.

A pop-up window will display where you input your values. Begin by selecting the Petroleum Product type from the drop-down list. It’s important to note that the conversion rate to CO2 equivalent will differ depending on the selected product type.

Also note that fuel types between Petroleum and Mobile Fuel may be the same. For example diesel fuel may be used for a truck, but that will be reported in the mobile fuel section. The same diesel fuel used in a stationary generator, should be reported as a petroleum entry.

Next, enter the date. Then enter the Monetary Amount, the Petroleum Product type amount, and the product type’s unit of measurement.

Here, you can upload any files pertaining to the entry, like a fuel bill, for example. Once the file is uploaded, select the document type from the drop-down list, here.

Next, you can enter any notes about the entry here.

Once all data has been entered, you can click save and next, which will allow you to add an additional entry, or click save, which will bring you back to the ESG Steward page.

Once saved, your entries will display here.

The columns will include the date, petroleum product type, monetary amount (or cost), Input amount, Unit of Measurement (or UOM), the converted standard amount and the standard amount UOM, the converted Heat Content (mmbtu), and one of the following depending on the GHG Output selected:
• CO2 (kg/mmBtu)
• CH4
• N20
• Or the default selection, CO2e or CO2 Equivalent

Note that the selections made in the GHG Output will impact the table data that is displayed. For this training, we will select the default CO2e, or Carbon Dioxide equivalent. This means whatever type of greenhouse gas emissions created by the combusted Petroleum, will be converted into the CO2 Equivalent.

When CO2 Equivalent is selected, like you see here, you will see the greenhouse the gas emissions produced and their unconverted outputs, located here.

You will then see the total CO2 equivalent for all greenhouse gas emissions for the entry, here.

Please note: Each portion of the greenhouse gases listed in the table goes through a conversion that will equal the total amount of CO2 equivalent for the entry. Because the greenhouse gases listed do not display their converted portion of the CO2e, adding these numbers that you see in the table will not equal the total CO2 equivalent for the entry.

Next, any attachments will be shown here (such as an electricity bill), and any notes regarding the entry.

On the right of each row you will see your edit and delete icons.

Mobile fuels consist of fuel types for moving vehicles, cars, trucks, farm equipment, etc… In general, the fuel types consist of electric, gasoline, diesel, and biodiesel and the conversion rate to CO2 equivalent will differ depending on the selected fuel type.

To create a mobile fuel entry, click here.

A pop-up window will display where you will input your values. Begin by selecting the Mobile Fuel type from the drop-down list. It’s important to note that the conversion rate to CO2 equivalent will be different depending on the fuel type selected.

Next, enter the date. Then enter the Monetary Amount, the fuel amount, and the fuel amount’s unit of measurement. Please note the UOM values will be different for electric vehicles vs. gasoline, diesel, or biodiesel vehicles.

Here, you can upload any files pertaining to the entry, like a gasoline bill, for example. Once the file is uploaded, select the document type from the drop-down list, here.

Next, you can enter any notes about the entry here.

Once all data has been entered, you can click save and next, which will allow you to add an additional entry, or click save, which will bring you back to the ESG Steward page.

Once saved, your entries will display here.

The columns will include the date, mobile fuel type, monetary amount (or cost), Input amount, Inputted Unit of Measurement (or UOM), standard amount and UOM, the Heat Content (mmbtu), and one of the following depending on the GHG Output selected:
• CO2 (kg/mmBtu)
• CH4
• N20
• Or the default selection, CO2e or CO2 Equivalent

Note that the selections made in the GHG Output will impact the table data that is displayed. For this training, we will select the default CO2e, or Carbon Dioxide equivalent. This means whatever type of greenhouse gas emissions created by the combusted Mobile fuel, will be converted into the CO2 Equivalent.

When CO2 Equivalent is selected, like you see here, you will see the greenhouse the gas emissions produced and their unconverted outputs, located here.

You will then see the total CO2 equivalent for all greenhouse gas emissions for the entry, here.

Please note: Each portion of the greenhouse gases listed in the table goes through a conversion that will equal the total amount of CO2 equivalent for the entry. Because the greenhouse gases listed do not display their converted portion of the CO2e, adding these numbers that you see in the table will not equal the total CO2 equivalent for the entry.

Next, any attachments will be shown here (such as an gasoline bill), and any notes regarding the entry.

On the right of each row you will see your edit and delete icons.

While you can export the tables from each section on this page by clicking on export at the bottom of each section, you can also export your total CO2 Equivalent from all sections by clicking on the ESG Record list.

On this page, you will be able to set filters for your list, located here.

You will also see all the records tracked by the ESG Steward listed here. You can view the total amount of CO2 equivalent for each standard by looking at the columns, here.

If you want to know the entire amount of CO2 equivalent for all standards, that number will be located here.

If you wish to export this chart, you can do so by scrolling to the bottom and clicking on Export, which will download an excel spreadsheet with the data from this page.

Topic 4 Key Takeaways

This concludes the Energy and Emissions inputs course for the ESG Steward.
Remember…
• For Scope 2, you must determine your energy grid before adding an entry. Each grid is converted differently.
• Petroleum Products are stationary and Mobile Fuel Products combust and move.
• The displayed greenhouse gas emissions are not yet converted into CO2 equivalent when seen in their respective column.

Thank you for attending this course – any questions, suggestions or feedback can be sent to support@visuallease.com